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LAHA Eligibility & Proposed Structure <br />Created by the Minnesota Legislature, LAHA funds are specifically designated to support <br />affordable housing development for qualifying projects. For rental housing projects to qualify for <br />LAHA expenditures, units must serve households with incomes that do not exceed 80% of the <br />Area Median Income (AMI) and create a certain percentage of sensory accessible units. The 99 <br />County Road B East project aligns fully with this statutory criteria and is required to meet the <br />State’s criteria in the Development Agreement. <br /> <br />To execute this framework, staff along with the City Attorney have structured a two-part <br />agreement: <br /> <br />1. Development Agreement (DA): Defines the standard conditions of approval for the 106- <br />unit project, codifies that the developer owes the City $200,000 for their share of the <br />municipal lift station upgrade, and establishes that the project satisfies all local and <br />statutory criteria for rental LAHA assistance. <br /> <br />2. Memorandum of Understanding (MOU): Governs the specific flow of the public housing <br />incentive, transferring the $200,000 in LAHA funds directly to the developer's preferred <br />entity/arm to satisfy the framework outlined in the Development Agreement. <br /> <br />Approval of the attached agreements will authorize execution of both the DA and MOU, allowing <br />the utility upgrades and site development to proceed. <br /> Recommendation: <br />Staff recommends the Council: <br /> <br />Approve the Development Agreement between the City of Little Canada and LC Apartments, LP, <br />and the companion Memorandum of Understanding by and among the City, LC Apartments, LP, <br />and FFAH V LC Senior Apts MN, LLC, regarding the 106-unit Little Canada Senior Apartments <br />project at 99 County Road B East; to authorize the Mayor and City Administrator to execute both <br />agreements; and to authorize the expenditure of up to $200,000 from the City’s Local Affordable <br />Housing Aid (LAHA) fund balance for the LAHA-qualified senior housing <br /> <br />Attachments: <br />• Attachment A: Development Agreement <br />• Attachment B: Memorandum of Understanding <br />